The year 2007 saw an improvement in results for many areas of the Canadian lodging and hospitality industry, particularly in Western Canada. Over the past 12 months, we have assisted our clients on over 100 accommodation projects across Canada representing in excess of $2.0 billion in hotel assets. The scope of these assignments has included asset evaluation and strategy, new development, acquisitions, refinancing appraisals as well as management and franchise agreement negotiation assistance on behalf of developers, owners, operators, purchasers and lenders. Our assignments have also included market studies for projects with fractional and condominium ownership, including several comprehensive, mixed use developments. Our client base is diverse, including multinational corporations, public sector institutions, Aboriginal organizations and individual developers and investors.
In addition to traditional hotel studies and appraisals, PKF undertook numerous other assignments in 2007 within the tourism and hospitality sector including studies for proposed convention centres in Moncton and Charlottetown, business planning input which assisted in obtaining capital funding for the new convention centre to be developed in Niagara Falls, a Tourism Investment Strategy for York Region (Ontario), a comprehensive resort study involving many development options on Fogo Island, Newfoundland, an evaluation of the Canada Select Grading program in Ontario; an overview of governance and development profiles of several leading US and Canadian ski resorts related to a destination resort project in Asia, updated projections for a an Olympic Legacy Project, the Whistler Athletic Centre on behalf of the Vancouver Organizing Committee for the 2010 Olympic Games and Paralympic Winter Games; accommodation needs assessment studies for three cities in Ontario, and feasibility studies for casino hotels in British Columbia and Saskatchewan.
Of note, in 2007, PKF Consulting completed underwriting due diligence on two major hotel portfolios representing $800 million in assets.
APPRAISALS AND VALUATIONS
Appraisals and Valuations totalling over $1.0 billion in assets on behalf of lenders such as the ATB, BDC, Royal Bank, Bank of Montreal, and CIBC.
ADVISORY SERVICES, MARKET STUDIES AND OPERATIONAL REVIEWS
Market Studies & Operational Reviews totalling $2.0 Billion
in assets on behalf of owners, operators and developers.
In 2007, PKF conducted assignments in several major cities in Canada. Overall, our projects were located in a diverse mix of urban centres, resort destinations and communities across Canada as well as international projects in the Caribbean and South Korea.
In September 2007, PKF Consulting hosted our fifth annual PKF Outlook Forum in Toronto and Vancouver, presenting a review of the performance of the Canadian hotel industry in 2007 and our forecasts for 2008. The events drew hundreds of guests, including developers, owners, lenders and representatives of various hotel companies.
PKF Consulting continues to be a major supporter of the industry as long time members of the Hotel Association of Canada, the Tourism Industry Association of Canada, the Canadian Tourism Research Institute, the Tourism and Travel Research Association as well as numerous provincial and local associations, supporting the industry's initiatives, also participating and presenting at conferences and events. PKF has continued to make presentations for the major lending institutions, keeping them abreast of the status of the industry, and despite the challenges it has faced, its relative strength. As we remain committed to the industry, all these initiatives will continue in 2008.
David Larone, Director, Toronto Beth Walters, Director, Vancouver
Brian Stanford, Director, Toronto Fran Hohol, Principal, Toronto
